Correlation Between E Split and Touchstone Exploration
Can any of the company-specific risk be diversified away by investing in both E Split and Touchstone Exploration at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining E Split and Touchstone Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Split Corp and Touchstone Exploration, you can compare the effects of market volatilities on E Split and Touchstone Exploration and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in E Split with a short position of Touchstone Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Split and Touchstone Exploration.
Diversification Opportunities for E Split and Touchstone Exploration
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENS and Touchstone is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding E Split Corp and Touchstone Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Exploration and E Split is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on E Split Corp are associated (or correlated) with Touchstone Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Exploration has no effect on the direction of E Split i.e., E Split and Touchstone Exploration go up and down completely randomly.
Pair Corralation between E Split and Touchstone Exploration
Assuming the 90 days trading horizon E Split Corp is expected to generate 0.23 times more return on investment than Touchstone Exploration. However, E Split Corp is 4.36 times less risky than Touchstone Exploration. It trades about 0.34 of its potential returns per unit of risk. Touchstone Exploration is currently generating about -0.07 per unit of risk. If you would invest 1,292 in E Split Corp on September 2, 2024 and sell it today you would earn a total of 85.00 from holding E Split Corp or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Split Corp vs. Touchstone Exploration
Performance |
| Timeline |
| E Split Corp |
| Touchstone Exploration |
E Split and Touchstone Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Split and Touchstone Exploration
The main advantage of trading using opposite E Split and Touchstone Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Split position performs unexpectedly, Touchstone Exploration can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Touchstone Exploration will offset losses from the drop in Touchstone Exploration's long position.| E Split vs. Global Dividend Growth | E Split vs. Real Estate E Commerce | E Split vs. Life Banc Split | E Split vs. Brompton Split Banc |
| Touchstone Exploration vs. Headwater Exploration | Touchstone Exploration vs. Gear Energy | Touchstone Exploration vs. Canacol Energy | Touchstone Exploration vs. InPlay Oil Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |